The "Hermit Effect" refers to a trend since the pandemic where customers are preferring to stay at home like hermits, which may influence their consumer behavior such as preferring online shopping or home deliveries.
This trend is influencing various aspects of business model design. It sheds light on the need for businesses to adapt their strategies to serve the evolving needs of their customer base. This includes understanding and catering to the changing needs of different demographic groups, including Baby Boomers, Millennials, and the disabled market.
Baby Boomers, for instance, may require more accessible services, healthcare-related products, technology training, and personalized customer service. Businesses should consider training their staff, adapting their products or services, investing in accessibility, and effective communication to cater to this group.
Millennials, who are becoming a more dominant market, are digital natives who value convenience, speed, and social responsibility. To serve them better, businesses need to understand their needs, adapt their services, and communicate effectively on platforms that resonate with them.
Additionally, there is an often overlooked market which is the disabled population. Businesses can tap into significant revenues from this customer base by making their businesses accessible and inclusive. This includes investing in physical and digital accessibility, inclusive communication, personalized services, and staff training.
Lastly, businesses can expand their workforce by employing disabled people. This needs strategic changes including accessibility improvements, training programs, flexible work arrangements, and inclusive hiring practices. This not only creates a more inclusive and diverse workforce but can also lead to increased creativity, improved problem solving, and a wider range of perspectives.
Understanding The Demographic Squeeze
"Baby Boomers vs Millennials" refers to the generational differences and potential conflicts between Baby Boomers (people born between 1946 and 1964) and Millennials (people born between 1981 and 1996). These differences can be in areas such as work ethics, technological adaptability, political and social views.
In the context of business model design, understanding these differences is crucial as it can impact how businesses market their products, design their services, and interact with their customers. For instance, Baby Boomers may prefer more traditional forms of customer service and may be less comfortable with technology compared to Millennials. On the other hand, Millennials often value convenience and speed, and are more likely to engage with businesses through digital platforms.
Baby Boomers Needs Are Changing
As Baby Boomers age, their specific needs are likely to include:
- Accessibility: Many Baby Boomers may face mobility issues as they age. Businesses could consider implementing more accessible facilities or services, such as home delivery or online services.
- Healthcare Services: With an increased focus on health and wellness, businesses could consider offering products or services that cater to these needs. This can include health and wellness programs, dietary products, or services that help manage chronic conditions.
- Technology Training: While some Baby Boomers are tech-savvy, others may need support in navigating digital platforms. Businesses could offer personalized tech training or customer support to help Baby Boomers feel more comfortable using their services.
- Personalized Customer Service: Baby Boomers often value high-quality customer service. Personalized interactions, attentive service, and a willingness to go the extra mile can make a big difference.
To serve Baby Boomers better, businesses could reorganize by:
- Training Staff: Employees should be trained to understand the specific needs of Baby Boomers and to provide suitable services.
- Adapting Products or Services: If necessary, existing offerings can be adapted or new ones can be developed to better suit the needs of Baby Boomers.
- Investing in Accessibility: This can include both physical modifications to the business premises and digital accommodations.
- Communicating Effectively: Businesses should ensure they are effectively communicating their offerings to Baby Boomers, possibly through different channels than they use for other demographic groups.
The Millennial Market Is Becoming More Dominant
Millennials, those born between 1981 and 1996, make up a significant portion of the population. In the United States, for instance, they were projected to overtake Baby Boomers in 2019 as the largest living adult generation. To meet the needs of this demographic, businesses need to focus on a few key areas:
- Digital Platforms: Millennials are digital natives and are more likely to engage with businesses through digital platforms. This includes social media, mobile apps, and online marketplaces. Businesses should invest in developing these platforms to improve accessibility and customer engagement.
- Convenience and Speed: Millennials value convenience and are more likely to use services that save them time. This includes online shopping, food delivery services, and digital banking. Businesses should consider how they can make their services more convenient and efficient for their customers.
- Social Responsibility: Millennials are more likely to support businesses that align with their values. This includes businesses that are socially responsible, environmentally friendly, and support local communities. Businesses should consider how they can incorporate these values into their business model and marketing strategy.
In order to serve Millennials, businesses need to:
- Understand Their Needs: Businesses need to conduct research to understand the needs and preferences of Millennials. This can include surveys, focus groups, and social media analysis.
- Adapt Their Services: Based on this research, businesses should adapt their services to meet the needs of Millennials. This could include developing new products, improving customer service, or investing in technology.
- Communicate Effectively: Businesses need to communicate with Millennials in a way that resonates with them. This often involves using social media, creating engaging content, and being transparent about business practices.
The Untapped Disabled Market
The potential of considering disabled people, who make up 22% of the Canadian population, can add significant revenues from this customer base. By making businesses accessible to them, companies can attract a larger audience and tap into an often overlooked market.
Disabled individuals may have a variety of specific needs based on their individual circumstances. Some of the common needs include:
- Accessibility: This includes physical accessibility, such as ramps and wheelchair-accessible facilities, as well as digital accessibility, like websites and apps that are designed to be navigable for those with visual or auditory impairments.
- Inclusive Communication: Businesses should consider how they communicate with disabled customers. This could include offering alternatives to standard forms of communication, such as sign language or text-to-speech options.
- Personalized Services: Depending on the nature of their disability, some individuals may require personalized services. Businesses should show flexibility and willingness to adapt their services to accommodate these needs.
To serve disabled customers better, businesses could consider the following:
- Investing in Accessibility: This can include making physical modifications to business premises or improving digital platforms to ensure they are accessible.
- Staff Training: Employees should be trained on how to effectively communicate with and serve disabled customers. This includes understanding different types of disabilities and knowing how to offer appropriate assistance.
- Inclusive Marketing: Marketing materials should be inclusive and cater to disabled individuals. This can include using diverse models and ensuring that promotional materials are accessible.
- Partnerships: Businesses can consider partnering with organizations that specialize in disability services to better understand the needs of this demographic and how to cater to them.
Expanding Workforce With Inclusive Hiring Practices
In order to employ disabled people, businesses need to make several strategic changes.
- Accessibility Improvements: Both physical and digital spaces should be accessible to all potential employees, regardless of their abilities. This might involve installing ramps, providing specialized equipment, or ensuring that digital tools are compatible with assistive technologies.
- Training Programs: Existing employees should be trained on how to interact effectively and respectfully with disabled colleagues. This can help to create a more inclusive and welcoming work environment.
- Flexible Work Arrangements: Some disabled individuals might benefit from flexible work arrangements, such as the ability to work from home or flexible hours. Businesses should consider how they might accommodate these needs.
- Inclusive Hiring Practices: Hiring practices should be inclusive, ensuring that disabled individuals are given fair consideration. This might involve providing accommodations during the interview process or explicitly stating in job postings that applications from disabled individuals are welcome.
By making these changes, businesses can create a more inclusive and diverse workforce, which can in turn lead to a range of benefits such as increased creativity, improved problem solving, and a wider range of perspectives.
Action Plan
Understand and cater to the changing needs of different demographic groups, including Baby Boomers, Millennials, and the disabled market
Train staff, adapt products or services, invest in accessibility, and communicate effectively to cater to Baby Boomers
Understand the needs of Millennials, adapt services, and communicate effectively on platforms that resonate with them
Make businesses accessible and inclusive to tap into the disabled market
Invest in physical and digital accessibility, inclusive communication, personalized services, and staff training for the disabled market
Employ disabled people by making strategic changes including accessibility improvements, training programs, flexible work arrangements, and inclusive hiring practices